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Tuesday, April 5, 2016

The Panama Papers Scandal Parses the Difference Between Bernie and Hillary

by Brian T. Lynch, MSW

This is yet another example where a clear eyed, independent
Bernie Sanders warned against passing legislation that he knew would be disastrous
while Hillary Clinton pressed for its passage. Sanders said exactly what would
happen if the Panama free trade agreement passed. He said it would make it
easier for, " ... the wealthiest people and most profitable corporations
in this country to avoid paying their fair share in taxes by setting-up
offshore tax havens in Panama.

Today we read headline stories like this:

"Years before more than a hundred media outlets around
the world released stories Sunday (April 3, 2016) exposing a massive network of
global tax evasion detailed in the so-called Panama Papers, U.S. President
Barack Obama and then-Secretary of State Hillary Clinton pushed for a Bush
administration-negotiated free trade agreement that watchdogs warned would only
make the situation worse."

After the free trade agreements passed in Congress, then
Secretary of State Hillary Clinton released the following statement:

"The Free Trade Agreements passed by Congress tonight
will make it easier for American companies to sell their products to South
Korea, Colombia and Panama, which will create jobs here at home. The Obama
Administration is constantly working to deepen our economic engagement
throughout the world and these agreements are an example of that commitment.

In opposition to the Panama free trade agreement bill being
debated in the Senate, Bernie Sanders said this on October 12, 2011 (Panama
comments printed here in full) :

Finally, Mr. President, let's talk about the Panama
Free Trade Agreement.
Panama's entire annual economic output is only $26.7 billion a year, or about
two-tenths of one percent of the U.S. economy. No-one can legitimately
make the claim that approving this free trade agreement will significantly
increase American jobs.
Then,
why would we be considering a stand-alone free trade agreement with this
country?
Well,
it turns out that Panama is a world leader when it comes to allowing wealthy
Americans and large corporations to evade U.S. taxes by stashing their cash in off-shore
tax havens. And, the Panama Free Trade Agreement would make this bad
situation much worse.
Each
and every year, the wealthy and large corporations evade $100 billion in U.S.
taxes through abusive and illegal offshore tax havens in Panama and other
countries.
According to Citizens for Tax Justice, "A tax haven . . . has one of three
characteristics: It has no income tax or a very low-rate income tax; it has
bank secrecy laws; and it has a history of non-cooperation with other countries
on exchanging information about tax matters. Panama has all three of
those. ... They're probably the worst."
Mr.
President, the trade agreement with Panama would effectively bar the U.S. from
cracking down on illegal and abusive offshore tax havens in Panama. In
fact, combating tax haven abuse in Panama would be a violation of this free
trade agreement, exposing the U.S. to fines from international authorities.
In
2008, the Government Accountability Office said that 17 of the 100 largest
American companies were operating a total of 42 subsidiaries in Panama.
This free trade agreement would make it easier for the wealthy and large
corporations to avoid paying U.S. taxes and it must be defeated. At a
time when we have a record-breaking $14.7 trillion national debt and an
unsustainable federal deficit, the last thing that we should be doing is making
it easier for the wealthiest people and most profitable corporations in this
country to avoid paying their fair share in taxes by setting-up offshore tax
havens in Panama.
Adding insult to injury, Mr. President, the Panama FTA would require the United
States to waive Buy America requirements for procurement bids from thousands of
foreign firms, including many Chinese firms, incorporated in this major tax
haven. That may make sense to China, it does not make sense to me.
Finally, Panama is also listed by the State Department as a major venue for
Mexican and Colombian drug cartel money laundering. Should we be rewarding
this country with a free trade agreement? I think the answer should be a
resounding no.

It is very difficult for average citizens like me to see
clearly what our politicians are really up to. This is true in part because we no
longer have an independent press challenging our politicians pro-business policies.
If "free trade" is good for businesses and the wealthy (the donor
class), it's good for corporate media profits and for campaign funding PAC's.

It is this nexus
between business, politics and the media that form the self-interested
"establishment" in America. It is a ruling elite that competes with
itself along party lines without faithfully
serving the interests of ordinary citizens. Both the extraordinary outsider
presidential campaigns of Donald Trump and
Bernie Sanders are driven by this single aspect of our national polity, the establishment elite.

Donald Trump representing opposition to the Republican
flavor of the establishment elite. He thrashes about like a wild man
trying to cobble together a rage tag constituency
of the disillusioned on the right.

Senator Sanders, on the other hand, has always seen through
the self-serving positions of the New Democrats (or Third Way Democrats). The
centrist moves of the modern Democratic party has always been a slide towards
corporate power. It helps Democrats win elections because centrist positions are
more lucrative for Democratic campaigns. By not accepting PAC money or wealthy
donations, Bernie Sanders has demonstrated just how clearly good politicians
can see the true impact of proposed legislation.

In this and many other examples, Bernie Sanders is like a
prophet. Not the religious kind, but in the
secular sense. He sees where we are headed more clearly than most and then uses
that information to try and get us to change course. That is what prophets, and
parents and true statesmen do.